401K in New Jersey Divorce
Splitting the 401K
In the event that either you or your spouse has a 401K or other type of retirement account, you may be wondering how is a 401K in New Jersey divorce cases typically split? You should know that there is important information which confirms that such an account is subject to New Jersey’s equitable distribution statute. What this means is that the value that has accumulated from the date of the marriage to the date of the filing of the Complaint for Divorce is subject to division.
For example, if your spouse has a 401K account with $100,000.00 invested, you are likely the non-retirement account holder and are entitled to half of the value of that account, assuming that all funds deposited into the account were made during the course of the marriage. Additionally, a divorcing spouse is entitled to the passive appreciation or depreciation associated with their portion of the account from the date of the finalization of the divorce until such time as the account is distributed.
Help From Certified Divorce Planners & Financial Analysts
The division of a 401K and other aspects of equitable distribution are integral parts of a divorce proceeding. Villani & DeLuca attorneys are intimately familiar with the division of these types of accounts. The divorce lawyers at Villani & DeLuca work closely with Certified Divorce Planners in assessing all aspects of the client’s financial future on a post-divorce basis. Certified Divorce Planners are otherwise known as Certified Divorce Financial Analysts (“CDFA”). By utilizing the services of a CDFA you will be presented with a clear view of your financial future. These financial professionals are trained to assist clients in avoiding the long-term financial pitfalls that can be associated with divorce agreements.
The attorneys at Villani & DeLuca have found that Certified Divorce Financial Analysts can be very helpful in forecasting the long term effects of various settlement scenarios including, but not limited to, tax liabilities and the like. These professionals are also experts in assisting an individual going through a divorce with developing a detailed budget to avoid post-divorce financial difficulties.
A good lawyer knows his or her limitations. A financial professional typically has more knowledge relative to 401K’s and various other types of retirement plans. Some attorneys do not spend the time and effort that is required in order to effectively insure that a divorce settlement is fair and equitable on a long-term basis. The importance of planning for one’s financial future cannot be overstated. You do not get a do over in a divorce settlement. It is absolutely imperative that you carefully consider all aspects of a divorce settlement with not only an attorney and a tax professional, but you should also use the worthwhile services that a Certified Divorce Financial Analyst can supply.
Contact an Experienced NJ Divorce Lawyer
Should you have any questions about any type of investment or financial planning as it relates to your New Jersey divorce, call the divorce lawyers of Villani & DeLuca today! If you would like advice on the appropriate protocol for advising your spouse your wish to obtain a divorce or about the divorce process in general, you can call for your free, no obligation consultation with one of our experienced divorce attorneys by calling 732-965-3350. If you would like to read and discover more about divorce here in NJ please visit our NJ Divorce Resource Center where we offer helpful information about divorce.
